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Debt woes persist for Schenectady

Council urged to pay minimum amount for another year

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The City Council may continue for another year the policy of paying almost nothing but interest on its debt. At Monday’s council committees meeting, new Finance Commissioner Deborah DeGenova advised the council to keep paying 1 percent interest and the minimum possible principal payment on its $66.8 million in debt. That minimum payment has meant the city has made virtually no progress paying off the money it has borrowed after 2008. DeGenova said the city ...

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comments

wmarincic
March 5, 2013
7:38 a.m.

[ Flag Post ]

Liberal finance management. Keep voting for idiots and you keep having idiots making decisions.

cfield
March 5, 2013
9:01 a.m.

[ Flag Post ]

what about leasing the body shop as a revenue sorce, or the extra money from the 400k given to carl olsen for the snow contract, what ever happened to isseuing tickets to the 911 offenders? how about renting the garage space on oregan ave, or collecting on unpaid parking tickets. so many ways to make money, why isn't anyone from the city looking into these options?

artbarb
March 6, 2013
4:43 a.m.

[ Flag Post ]

save this link:

http://www.fiscaladvisors.com/statements...

read/study it often, there is much info in lay terms .. it uses 2010 City financial data.

Again this May there will be another BAN offering, using 2011 City financial data .. there will be discussion of trends 2010-2011.

According to article above, the May 2013 BAN will be for $66.8 million minus the $20 million conversion to long term debt, or $46.8 million? which is STILL a $5 million increase in City Debt. The May 2013 BAN official statement will analyze the city's debt at approx. pg. 28.

Since city council votes on this, you can TRUST that each member has read EVERY WORD of this document and understands it COMPLETELY!

artbarb
March 6, 2013
5:22 a.m.

[ Flag Post ]

p.s. It's NOT CLEAR (or easy) to see, but at end of 2011, the City's total assets were $122 million and it's total debt/liabilities were $142 million. (of which $90 million was simply debt. see pg. 28 in above link). After the May 2012 BAN, city total Debt > $100 million!

See also pg. 16 showing $8 million annual payment to retirement system compared to pg. 21 total 2012 revenues $79 million. (includes $67 million revenue from property taxes, does not include $20 million state/fed aid.)

Public safety costs $30 million/yr. Employee Benefits cost $25 million/yr. Community Services cost $23 million. Debt service costs $10 million. Running City Hall costs $7.5 million and Transportation costs $10 million.

This is based on 2011 financial data. So there you have it: $100 million in; $110 million out.

roughly

artbarb
March 6, 2013
5:32 a.m.

[ Flag Post ]

[http://www.fiscaladvisors.com/statements/051012-schenectadycity-OS-61101619.pdf]

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